Company Completes Financial Review and Restatement and Files Form
10-Q and Form 10-K with the SEC

WESTFORD, Mass.—(BUSINESS WIRE)—Nov. 8, 2005—
MatrixOne, Inc. (NASDAQ:
MONEE), a leading provider of
collaborative product lifecycle management (PLM) solutions for the
value chain(TM), today announced results for its third quarter ended
April 2, 2005 as well as its fourth quarter and fiscal year ended July
2, 2005. The Company also announced that the financial review
conducted under the direction of the Audit Committee of the Company's
Board of Directors has been completed. Further, the Company has
completed the related restatements of its financial statements from
fiscal 1999 through the second quarter of fiscal 2005 and filed with
the Securities and Exchange Commission its Quarterly Report on Form
10-Q for the quarter ended April 2, 2005 and its Annual Report on Form
10-K for the fiscal year ended July 2, 2005.

Financial Results for Third and Fourth Quarter of Fiscal 2005

For the third quarter ended April 2, 2005, total revenues were
$27.0 million, compared to $27.7 million in the same period last year.
For the third quarter, net loss was $6.5 million, or $0.13 per share,
compared to a net loss of $2.4 million, or $0.05 per share, in the
same period last year. For the third quarter ended April 2, 2005,
adjusted net loss(1), which excludes amortization of intangible assets
of $0.3 million, was $6.2 million, or $0.12 per share. There were no
adjustments to net loss for the third quarter ended April 3, 2004.

For the fourth quarter ended July 2, 2005, total revenues were
$32.5 million, compared to $29.6 million in the same period last year.
For the fourth quarter, net loss was $11.7 million, or $0.23 per
share, compared to net income of $0.9 million, or $0.02 per share, in
the same period last year. Net loss for the fourth quarter ended July
2, 2005 includes expenses related to the financial review and
restatement of $4.2 million, or $0.08 per share. For the fourth
quarter ended July 2, 2005, adjusted net loss(1), which excludes
amortization of intangible assets of $0.3 million, was $11.4 million,
or $0.22 per share, compared to adjusted net income(1), which excludes
restructuring gains of $0.1 million, of $0.8 million, or $0.02 per
share, in the same period last year.

For the fiscal year ended July 2, 2005, total revenues were $124.1
million, compared to $109.6 million in the prior fiscal year. For the
fiscal year ended July 2, 2005, net loss was $20.3 million, or $0.40
per share, compared to a net loss of $12.4 million, or $0.26 per
share, in the prior fiscal year. Net loss for the fiscal year ended
July 2, 2005 includes expenses related to the financial review and
restatement of $4.2 million, or $0.08 per share. For the fiscal year
ended July 2, 2005, adjusted net loss(1), which excludes amortization
of intangible assets of $1.1 million, was $19.2 million, or $0.37 per
share. For the fiscal year ended July 3, 2004, adjusted net loss(1),
which excludes stock-based compensation, restructuring charges and
asset impairment and disposal charges of $4.0 million, was $8.4
million, or $0.17 per share.

Financial Review and Restatement Completed

The Company also announced today that the financial review
conducted under the direction of the Audit Committee of the Company's
Board of Directors has been completed. As previously announced,
management and the Audit Committee concluded that errors in revenue
recognition at the Company's Japanese subsidiary required the Company
to restate its previously reported financial results. The restatement,
which affected previously reported financial results from fiscal 1999
through the second quarter of fiscal 2005, has also been completed.
The revenue adjustments made in the restatement related to errors in
revenue recognition principally at the Company's Japanese subsidiary
and resulted in a change in the timing of the recognition of revenue
previously paid for and recognized. The Company also made adjustments
due to: (a) the timing of revenue recognition for certain transactions
in Europe; (b) the timing of revenue recognized related to several
customer arrangements that included certain commitments to provide
future software functionality; (c) the recognition as research and
development expense certain third-party development and licensing
arrangements previously capitalized and recognized as cost of software
license revenues; (d) the timing of the recognition of certain
expenses associated with the revenue being adjusted; and (e)
adjustments to certain other asset and liability accounts.

Total revenues for the six month period ended January 1, 2005, as
restated, were $64.7 million compared to $64.7 million as previously
reported. Net loss for the six month period ended January 1, 2005, as
restated, was $2.0 million compared to $2.3 million as previously
reported. Total revenues, as restated, for fiscal 2004 were $109.6
million compared to $109.1 million as previously reported. Net loss,
as restated, for fiscal 2004 was $12.4 million compared to $16.2
million as previously reported. Expenses related to the financial
review and restatement totaled approximately $5.0 million. The Company
recognized $4.2 million of expenses related to the financial review
and restatement in the fourth quarter of fiscal 2005 and expects to
recognize approximately $0.8 million of expenses related to the
financial review and restatement in the first quarter of fiscal 2006.

Company Files Form 10-Q and Form 10-K

On November 8, 2005, the Company filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q for the quarter
ended April 2, 2005 and its Annual Report on Form 10-K for the fiscal
year ended July 2, 2005. The Company believes that it is now in
compliance with the conditions set forth by the Nasdaq Listing
Qualifications Panel when it granted the Company an additional
extension for continued listing on The Nasdaq National Market until
November 8, 2005. The fifth character "E" will remain appended to the
Company's symbol pending a final determination that the Company is
fully compliant with Nasdaq's filing requirements. The Company
anticipates filing, as soon as practicable, an amended Quarterly
Report on Form 10-Q for the second quarter of fiscal 2005 for the
purpose of restating its condensed consolidated financial statements
for the second quarter of fiscal 2005. The Company will not be filing
an amended Quarterly Report on Form 10-Q for the first quarter of
fiscal 2005 as previously stated.

Company to Host Live Conference Call and Webcast on November 9,
2005

The Company's management team will host a live conference call and
webcast at 5:30 p.m. eastern time on Wednesday, November 9, 2005 to
discuss the Company's financial results for the third quarter ended
April 2, 2005 as well as the fourth quarter and fiscal year ended July
2, 2005. The conference call may be accessed in the United States by
dialing (877) 777-1972 and using passcode "MONE." The conference call
may be accessed outside of the United States by dialing (612) 332-0636
and using passcode "MONE." The webcast will be accessible from the
Company's website at
www.matrixone.com/investor.

Key Operational Highlights

The following milestones were completed or announced during the
third and fourth quarters of fiscal 2005:

-- MatrixOne recognized revenue from a number of the world's most
innovative companies, including ARM, a leading provider of
power-efficient microprocessors and related technology and
software; Agilent Technologies' Semiconductor Products Group,
a leading supplier of advanced semiconductor components to the
mobile phone, enterprise storage and networking, and broad
optoelectronic markets; Barilla, the world leader in the pasta
market and the largest producer of bakery products in Italy;
Cummins Inc., a leading provider of power solutions; Fujitsu
Network Communications, a leading provider of customer-focused
IT and carrier-class telecommunications solutions for the
service provider and cable television market; Legrand, a
leading provider of products and systems for electrical
installations and information networks; and Lockheed Martin
Corporation, an advanced technology company.

-- MatrixOne announced several new solutions including the
release of Matrix 10.6, which includes advanced capabilities
for synchronous product development across electrical,
semiconductor, mechanical and software design, enabling
companies to compress development cycles, improve information
reuse and reduce the possibility of product rework, ultimately
enabling companies to produce better products at a lower cost.
Matrix 10.6 also featured a new business process application
called MatrixOne Designer Central(TM), a comprehensive
workgroup design application that allows product designers and
their extended supply chains to manage the design process and
collaborate from one central application, regardless of the
design tools they are using.